Pan American Silver (PAAS) AI Stock Analysis

• Market Cap: C$36.85B
• Dividend Yield: 0.88%
• Average Volume (3M): 953.74K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 2.11
• Revenue Growth: 25.04%
• EPS Growth: N/A
• Country: US
• Employees: 9,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Silver
• EPS (TTM): 0.67
• Shares Outstanding: 422,047,000
• 10 Day Avg. Volume: 1,192,468
• 30 Day Avg. Volume: 953,740
• PEG Ratio: -0.33
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 18.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$78.26
• Price Target Upside: -12.37% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: C$101.00 ▲(13.09% Upside)

The score is driven primarily by strong financial performance (profitability, cash generation, and low leverage) and a constructive earnings update with improved guidance and record cash flow. Technicals support the uptrend, but overbought signals raise near-term risk. The main constraint is valuation, with a high P/E and modest dividend yield.

Positive Factors

Cash Generation

Record quarterly free cash flow demonstrates durable internal funding capacity. Strong FCF supports sustained capital spending, dividend increases, and strategic acquisitions without reliance on external financing, strengthening long-term operational and financial flexibility across commodity cycles.

Balance Sheet Strength

Very low leverage and a high equity base reduce refinancing and interest-rate vulnerability, providing capacity to fund expansions or weather commodity downturns. Conservative balance sheet improves resilience and preserves optionality for project development and M&A over the medium term.

Scale & Cost Improvements

Higher production guidance plus a meaningful Juanicipio stake lift scale and lower all-in sustaining costs, enhancing margin sustainability. Increased output and asset consolidation drive longer-term cash flow stability and better unit economics across the portfolio.

Negative Factors

Operational Reliability

Recurring technical problems across multiple sites point to execution risk that can depress output and revenue consistency. Persistent operational failures raise maintenance and capital intensity, harming long-term production predictability and elevating unit cost pressure.

Ore Grade Pressure

Sustained lower grades at Huaron reduce recoverable metal per tonne and raise unit costs, requiring more development and mining effort. If grade declines persist, margins and free cash flow conversion could weaken, necessitating higher sustaining capital or cost offsets elsewhere.

Regulatory/Project Uncertainty

Open-ended consultation timelines create material project risk for Escobal, delaying potential production and cash flow. Regulatory uncertainty complicates capital allocation and planning, and can permanently impair asset value if resolution is protracted or outcomes constrain operations.

Pan American Silver Business Overview & Revenue Model

Company Description

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Argentina, and Bolivia. It holds interests in the La Colorada, Dolores, Huaron, Morococha, Shahuindo, La Arena, Timmins West, Bell Creek, Manantial Espejo, San Vicente, Joaquin, Cap-Oeste Sur Este, and Navidad mines. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Pan American Silver generates revenue primarily through the sale of silver and gold, which are its core products. The company operates a diversified portfolio of mining assets, producing not only silver but also other metals such as copper, zinc, and lead. Revenue is significantly driven by the global market prices of these metals, with silver sales accounting for a substantial portion of total earnings. Additionally, Pan American Silver engages in strategic partnerships and joint ventures that allow for shared resources and expertise in mining operations. The company also benefits from cost management initiatives, operational efficiencies, and a focus on expanding its resource base through exploration projects, further enhancing its revenue potential.

Pan American Silver Financial Statement Overview

Summary

Strong profitability and improving operating performance (TTM revenue up 4.44%, net margin 16.77%, EBITDA margin 45.35%), supported by solid cash generation (operating cash flow to net income 1.52; free cash flow growth 9.68%). Balance sheet leverage is conservative (debt-to-equity 0.17) with a strong equity base (equity ratio 72.34%).

Income Statement

Pan American Silver shows strong revenue growth with a 4.44% increase in TTM, supported by a robust gross profit margin of 28.39% and a net profit margin of 16.77%. The EBIT and EBITDA margins are also healthy at 27.36% and 45.35%, respectively, indicating efficient operations and profitability. The company has improved significantly from previous years, showcasing a positive growth trajectory.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.17, indicating conservative leverage. Return on equity is improving at 10.94%, showing effective use of equity to generate profits. The equity ratio stands at 72.34%, highlighting a strong equity base relative to total assets. Overall, the company maintains stability with manageable debt levels.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 9.68% in TTM, with an operating cash flow to net income ratio of 1.52, suggesting strong cash generation relative to net income. The free cash flow to net income ratio of 0.70 indicates efficient conversion of earnings into cash. This solid cash flow performance supports the company's financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.25B	2.82B	2.32B	1.49B	1.63B	1.34B
Gross Profit	1.02B	548.50M	214.60M	48.36M	367.94M	360.18M
EBITDA	1.52B	1.05B	476.80M	22.07M	554.87M	539.07M
Net Income	634.10M	111.50M	-103.70M	-340.06M	97.43M	177.88M
Balance Sheet
Total Assets	9.15B	7.20B	7.21B	3.25B	3.52B	3.43B
Cash, Cash Equivalents and Short-Term Investments	910.80M	887.30M	440.90M	142.34M	335.27M	279.06M
Total Debt	857.00M	803.30M	801.60M	226.84M	45.86M	33.56M
Total Liabilities	2.52B	2.49B	2.44B	1.05B	882.58M	828.04M
Stockholders Equity	6.62B	4.70B	4.76B	2.20B	2.63B	2.60B
Cash Flow
Free Cash Flow	746.10M	400.80M	71.20M	-242.78M	148.63M	283.76M
Operating Cash Flow	1.05B	724.10M	450.20M	31.91M	392.11M	462.31M
Investing Cash Flow	-380.80M	-32.60M	397.90M	-255.40M	-186.66M	-83.92M
Financing Cash Flow	-238.00M	-225.20M	-551.80M	52.97M	-85.91M	-329.59M

Pan American Silver Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PAAS, the sentiment is Positive. The current price of 89.31 is above the 20-day moving average (MA) of 78.94, above the 50-day MA of 69.78, and above the 200-day MA of 49.55, indicating a bullish trend. The MACD of 5.21 indicates Negative momentum. The RSI at 74.95 is Negative, neither overbought nor oversold. The STOCH value of 67.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PAAS.

Pan American Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAAS	77 Outperform	C$36.85B	36.09	11.27%	0.88%	25.04%	―
FVI	76 Outperform	$4.83B	14.75	15.63%	―	7.61%	915.74%
SVM	69 Neutral	$3.80B	107.48	3.54%	0.29%	37.50%	-60.92%
DSV	63 Neutral	$9.26B	291.34	11.03%	―	―	―
AG	62 Neutral	C$17.15B	204.57	3.44%	0.12%	88.70%	―
AYA	62 Neutral	C$3.73B	1,665.48	0.71%	―	241.04%	-80.07%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Pan American Silver Corporate Events

Pan American Silver Beats 2025 Output Targets and Lifts 2026 Guidance on Stronger Margins

Pan American Silver reported preliminary 2025 production results showing attributable silver output of 22.8 million ounces, above its updated guidance range, and attributable gold production of 742,200 ounces, within guidance, supported by record fourth-quarter silver volumes. The recently acquired Juanicipio mine outperformed expectations by contributing 2.5 million ounces of silver and a $44 million dividend in 2025, while the company’s estimated year-end cash and short-term investments rose to $1.319 billion, excluding additional cash at Juanicipio, leaving total available liquidity at about $2.069 billion and underscoring a robust balance sheet. For 2026, Pan American guides to higher attributable silver production of 25.0–27.0 million ounces and gold output of 700,000–750,000 ounces, with silver segment all-in sustaining costs projected at $15.75–$18.25 per ounce and gold segment AISC at $1,700–$1,850 per ounce. Planned 2026 capital expenditures of $515 million–$550 million will be split between sustaining and project capital as the company advances internal growth initiatives, including a phased development plan for the La Colorada Skarn and vein mine and optimization work at Jacobina, positioning the miner for expanded operating margins and continued capital returns to shareholders.

The most recent analyst rating on (TSE:PAAS) stock is a Buy with a C$88.00 price target. To see the full list of analyst forecasts on Pan American Silver stock, see the TSE:PAAS Stock Forecast page.

Pan American Silver Expands Stake in Galleon Gold Through Strategic Acquisition

Pan American Silver Corp. has acquired 18,750,000 units of Galleon Gold Corp. as part of a private placement, marking a significant investment move. This acquisition positions Pan American to potentially increase its stake in Galleon, reflecting a strategic investment approach that could influence its market presence and stakeholder interests.

The most recent analyst rating on (TSE:PAAS) stock is a Buy with a C$51.00 price target. To see the full list of analyst forecasts on Pan American Silver stock, see the TSE:PAAS Stock Forecast page.